Wednesday, October 28, 2020
Home BUSINESS Ghana Stock Exchange delists some businesses over failure to deliver dividends

Ghana Stock Exchange delists some businesses over failure to deliver dividends

Head of Research at Data Bank, Mr. Alex Boahene has revealed that a significant number of businesses have been delisted from the Ghana Stock exchange as a result of the failure of the companies to deliver dividends and share price appreciation since 2017.

In a span of 3 years, about 8 companies have either voluntarily delisted or have compulsorily been delisted.

Mr. Boahene in an interview with universnews monitored by Talksafrica.com stated that investors are not financing these companies because they have failed to deliver in recent times.

“For sure I think those companies have been struggling for some years. The reason for investors investing in companies is because they want the companies to be profitable so that they can pay dividends to them. They want their share prices to actually appreciate the market so that they can make capital gains. But if you look at recently, these companies have failed to deliver that, both dividends and share price appreciation.”

Mr. Alex Boahene further encouraged the companies to leave the public spotlight, re-organize themselves, and return to the market.

READ ALSO  Akufo-Addo cuts sod for Tema sewer network and Ashaiman solid waste plant

“It stands to reason that, when it gets to a point, it is probably in the interest of the shareholders and the investor community for these companies to go off the market so that they can re-strategize and when things improve, they can come back and apply again, and lift on the market again.

Mr. Alex Boahene also advised other companies, especially the Small and Medium-sized Enterprises (SME’S) to give thought to listing on the Ghana Alternative Markets (GAX), to avoid the strict compliance standards of the main market.

READ ALSO  Obetsebi-Lamptey Interchange 92% Complete; Jamestown Fishing Harbour 15% complete
READ ALSO  Ofori-Atta to presents 2021 Q1 budget statement to Parliament today

“In terms of encouraging companies to lift on the market, I think more companies should be pushed so that at least we can get a lot more Small and Medium-sized Enterprises (SMEs) coming onto the market. The rules on GAX are more relaxed than the main market. Because even in terms of financial reporting, GAX conducts its reporting twice in a year while on the main market, it is done four times in a year.”

The companies that voluntarily delisted were Mechanical Lloyd and PZ Cussons while Pioneer Kitchen Ware, African Champion Industries, Golden Web, Transactions Solution Ghana, and UT Bank underwent compulsory delisting.

READ ALSO  Ofori-Atta to presents 2021 Q1 budget statement to Parliament today

Talksafrica.com

Most Popular

Hasaacas name Ebo Kobina Baiden as CFO

Following last weekend’s Board of Directors and Executive Management meetings, Sekondi Hasaacas FC have announced the second of several appointments to its Executive Management...

Ahmad Ahmad announces re-election bid

Confederation of African Football (CAF) President Ahmad Ahmad has submitted his candidacy to serve a second term in office when elections take place next...

Kurt Okraku reaffirms faith in C.K Akonnor to end Ghana’s trophy drought

President of the Ghana Football Association, Kurt E. S. Okraku has reaffirmed his belief in C.K Akonnor to succeed as coach of the National...

Full Speech: Engagement with Professionals on NDC Peoples’ Manifesto, organised by the Centre for Social Justice

Good evening and thank you very much, my friends from the Centre for Social Justice for the invitation and opportunity to share in your...

Recent Comments